Mobile Home Park Owner News
Published by: Jim Carmichael, January 4, 2005
HAPPY NEW YEAR!!!!
I hope 2004 was as good to you as it was to me. And I believe 2005 will be even better for all of us! We finally have several indicators that the industry has hit the bottom of the barrel. As Chris Stinebert says in the November 2004 issue of The Journal, we are finally beginning to see the tangible signs that the much anticipated upswing has begun.” Lenders are back to mid 600 fico scores, shipments are up and expected to go up more in 2005.
This is all good news for park owners and investors. I believe we will see a slow (at first) but steady increase in occupancy over the next three years, as I said almost one year ago in my 1/14/04 newsletter.
Even throughout the down time CAP rates have held steady on real numbers and I believe that will continue. As our business has changed in the last few years, real opportunities for profit are out there.
Where are you as a park owner/ investor? Are you ready to grow your portfolio or are you ready to retire to a warm place inside, where security is more interesting than management?
DOES ANY PART OF THIS SOUND FAMILIAR TO YOU?
- 315 pad MHP (60% of property in 100 year flood plain)
- Well below market rent with low vacancy. But having to sell & finance homes to keep vacancy down.
- Original owner of MHP (since 60’s), with little or no basis.
- Major capitol improvements needed soon.
- 2 office people & 3 maintenance people to employ.
- Owner near or at retirement age.
- Day to day headaches of such a property.
- Great cash flow.
If you were the owner and could sell this property for a passive investment and keep your cash flow at or above what you are already doing, while setting up your estate, would you?
You can and I can show you how! I sold this deal @ a 9% CAP. We turned around and bought three single tenant triple net deals with credit tenants. The client is now collecting checks and his estate is set up for his family in case of his demise.
For any of you who would like more information on all the alternatives available to you for tax free sales and estates, just give me a call or drop me an email.
SEE YOU AT THE SHOW
I hope to see all of you at the Midwest Manufactured Housing Show in Louisville, KY on January 12, 13 and 14. My assistants and I will be walking the aisles checking everything out and looking to meet you.
Just look for the big guy with a flat top haircut. Come say hi if I don’t get to you first.
I will be hosting a reception on the second night of the show for a small group of investors, owners and such related services, as I mentioned last year. If you would like to join us for some shop talk in an informal environment and just have a good time, let me know so I don’t over crowd the room.
Check us out on the web at www.firstcommrealty.com
Please help me welcome my new associate Lisa Abernathy to our office. She is new to commercial real estate, but is eager to learn. I will be training her to specialize in the Multi Family business. While she learns she will be assisting me. So some of you may hear from her.
First Commercial Realty, Inc.
Our goal is to help our clients find the best property in the best location that will maximize their return.
Celebrating our 25th year in business, FIRST COMMERCIAL REALTY, INC. services our client’s needs in the areas of sales, leasing, development, investments, site selection, & buyer/tenant representation. Our agents specialize in their particular field of expertise.
These 25 years of experience, creating good investments for our clients, giving the best service and analyzing the total deal, is what we have to offer you. Anybody can sell a listing and get it financed, but does the deal make sense? We sell and lease shopping centers, office complexes and warehouses working with developers and users as well as listing and selling income producing investment property. We are “dealmakers”. A lot of our business is repeat because we do what’s right. First Commercial Realty is licensed in Kentucky, Ohio, and Indiana.
Some of our Northern Kentucky clients have included CVS, Turfway Retail Center, anchored by Sam’s Club and Wal-Mart; Cinergy Plant; Willis Music, McDonald’s, Cracker Barrel Restaurants, Applebee’s, Microtel, Super 8, Motel 6, Courtyard by Marriott, Kinko Copies, Burger King, Subway, Burlington Health Care and many others.
First Commercial Realty is a continuum of self-motivated hard work and we enjoy helping clients achieve their investment goals. We believe in the ethics and moral responsibility that goes along with being a real estate broker. We would like to help you find your commercial real estate.
If you are selling your property, expanding your business, seeking a new location or looking for investment property in Kentucky, Ohio or Indiana, you need one of our dedicated commercial real estate professionals to represent you.
F1RST COMMERCIAL REALTY, INC.
8174 Mall Rd
Florence, KY 41042
WE ARE NOW ON THE WEB AT WWW.FIRSTCOMMREALTY.COM
Celebrating our 25th year of Professional Service
Jim Carmichael has been in the manufactured housing industry for over 11 years. He has spent time in retail sales with Oakwood and Clayton and later managed a sales center for Clayton in North Carolina.
Jim has a unique perspective of community ownership. He knows where the homes come from and who lives in a MHP. He has devoted the last several years to learning the operation of communities and what investors look for.
Proficient at the 1031 process, Jim will help you after the sale as well.